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Mumbai, India, September 29, 2014

Gartner Says India IT Infrastructure Spending to Reach $2 Billion in 2015

India Will Be The Second Largest Market For Data Center Infrastructure In Asia/Pacific

The Indian data center infrastructure market, comprising of server, storage and networking equipment, will total $2.03 billion in 2015, a 5.4 percent increase from 2014 revenue of $1.92 billion, according to Gartner, Inc. India will be the second largest market for data center infrastructure within the Asia/Pacific region, and it will also be the second fastest growing market in Asia/Pacific in 2015.

Gartner analysts will provide the latest outlook on the Indian data center market and related issues at Gartner Symposium/ITxpo, scheduled 14-_17 of October, 2014 at the Grand Hyatt Goa. The theme for this year’s conference is driving digital business, and the 2014 agenda will provide full coverage of the game-changing forces at work in enterprise IT.

“A strong return to growth is expected next year in the Indian data center infrastructure market, and the market will be buoyed by an overall increase in sentiments and a strong resurgence of growth-related projects across verticals such as banking, insurance, telecom and the government segment,” said Aman Munglani, research director at Gartner. ”While much of the SMB segment is likely to focus on infrastructure build up, large enterprises within the segments mentioned above will look at infrastructure replacement and growth related projects covering mobility, cloud and big data.”

Indian enterprises will be focusing on building intelligent data centers that focus on optimizing existing hardware assets by using additional software capabilities. This will drive increased attention on newer trends such as public cloud, and integrated systems.

Within the Indian IT infrastructure market, server revenue is forecast to reach $677 million in 2015, a 3 percent increase over 2014 (see Table 1). This will be the first year of positive growth post the decline of 5.3 percent in 2013 and the 2.1 percent decrease expected in 2014. There are numerous drivers for compute capacity- for example the Nexus of Forces (encompassing cloud, social, mobile and information) creates a whole host of new workloads that will need servers to provision the compute capacity. Density, power consumption and performance are some of the top concerns on the minds of end user organizations.

Enterprise networking is the biggest segment with revenue expected to reach $948 million in 2015. Data center consolidation and virtualization, along with cloud and mobility, are the key trends influencing network purchases. There is great potential for both users and vendors to leverage some of the emerging technologies to be ready for the future.

Table 1: Indian IT Infrastructure Revenue By Technology (Millions of U.S. Dollars)

Revenue

2014

2015

2016

2017

2018

Servers

656

677

724

761

791

Storage

382

409

436

460

483

Enterprise Networking

892

948

970

1007

1011

Total

1.929

2,033

2,129

2,227

2,285

Source: Gartner, (September 2014)

The storage market is forecast to reach $409 million in 2015, a 7 percent increase from this year. Storage modernization and consolidation, backup and recovery, and disaster recovery are some of the key drivers to this market, and they are likely to remain relevant drivers over the forecast period through 2018. A strong recovery within the telecommunication segment, coupled with growth within the manufacturing and the government segment, will continue to drive market growth.

About Gartner Symposium/ITxpo

Gartner Symposium/ITxpo is the world's most important gathering of CIOs and other senior IT executives. This event delivers independent and objective content with the authority of the world's leading IT research and advisory organization, and provides access to the latest solutions from key technology providers. Gartner's annual Symposium/ITxpo events are key components of attendees' annual planning efforts. IT executives rely on these events to gain insight into how their organizations can use IT to address business challenges and improve operational efficiency.

Additional information for Gartner Symposium/ITxpo 2014 in Goa, October 14-17, is available at www.gartner.com/in/symposium. Members of the media can register for the event by contacting Sony Shetty at sony.shetty@gartner.com.

Additional information from the event will be shared on Twitter at http://twitter.com/Gartner_inc and using #GartnerSym.

Upcoming dates and locations for Gartner Symposium/ITxpo include:

October 5-9, Orlando, Florida: www.gartner.com/us/symposium

October 14-17, Goa, India: www.gartner.com/in/symposium

October 27-30, Sao Paulo, Brazil: www.gartner.com/br/symposium

October 28-30, Tokyo, Japan: www.gartner.com/jp/symposium

November 9-13, Barcelona, Spain: www.gartner.com/eu/symposium

November 17-20, Gold Coast, Australia: www.gartner.com/au/symposium

About Gartner

Gartner, Inc. (NYSE: IT), is the world’s leading research and advisory company and a member of the S&P 500. We equip business leaders with indispensable insights, advice and tools to achieve their mission-critical priorities today and build the successful organizations of tomorrow.

Our unmatched combination of expert-led, practitioner-sourced and data-driven research steers clients toward the right decisions on the issues that matter most. We are a trusted advisor and objective resource for more than 15,000 organizations in more than 100 countries — across all major functions, in every industry and enterprise size.

To learn more about how we help decision makers fuel the future of business, visit gartner.com.

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